Like other class actions that have been brought around loot boxes, the lawsuit cites gambling-relevant sections of Canada's Criminal code to allege that loot boxes should also be considered a type. Accordingly, all gambling is generally criminalized in Canada (see section 206). After initially criminalizing all gambling, the Criminal Code, in the next section (s. 207), sets out exceptions. Activities which are provincially-licensed and regulated are deemed to be legal gambling.
- Criminal Code Of Canada Illegal Gambling Winnings
- Criminal Code Of Canada Illegal Gambling Sites
- Criminal Code Of Canada Illegal Gambling Laws
- Criminal Code Of Canada Illegal Gambling Rules
Before you can enjoy any form of legal gambling in Canada, it is imperative that you possess a basic understanding of Canadian gambling laws, and how they are relevant to the nation’s gambling market. Canadian criminal laws are enforced on a federal level, but gambling laws are enacted on a provincial and territorial level. This makes criminal laws identical to all provinces and territories but specific gambling regulations different throughout Canada. Today there are multiple forms of legal gambling in all territories and provinces; however, the way they operate differs around the country.
From among the numerous positive attributes that Canada boasts, one of our favorites is their stance on gambling and how they use the revenue produced from casinos, lotteries, sports betting and other wagering services to fund provincial and territorial programs to benefit their local communities. This page is designed to provide insight into the legal gambling options across Canada and to inform our readers about the laws and government agencies that regulate the gaming industry. Gambling laws vary from country to country around the globe, so it is important to stay informed before breaking any international law.
Is Gambling Legal In Canada?
Yes, Canadians have multiple legal gambling entertainment options available to them across the country. In 1969, the Canadian government changed the national criminal code to allow lotteries to help fund the upcoming Olympic games. The change also gave the provinces and territories the authority to allow additional legal gambling entertainment venues. Canada has always stood proudly as being a progressive nation and today each province and territory within its borders provides some form of legal gambling entertainment. Below we have listed the legally sanctioned betting venues found within each of the provinces and territories. The 3 territories are very remote due in part to their northern geographical location, so brick-and-mortar locations are limited if offered at all.
Forms Of Legal Gambling In Canada
As mentioned above, gambling is regulated in Canada through the individual provinces. The provincial government agencies possess the authority to determine what legislation to enact to either allow or prohibit gambling operations in their community. Lawmakers also determine where the revenue earned from those services will be applied and what provincial or territorial public service they will fund. While some form of gambling is legal in all provinces and territories, not all areas allow the same forms of gambling entertainment. The specific regional regulations upheld in the province you reside in or visit will determine which gambling options are available in that area. Below is a list of each province and territory located in Canada, as well as the legally approved forms of gambling services that are regulated by the local governments and in operation at this time.
Alberta – Casinos, Lottery, Sports Betting
British Columbia – Casinos, Lottery, Horse Racing, Sports Betting
Manitoba – Casinos, Sports Betting
New Brunswick – Casinos, Horse Racing, Lottery, Sports Betting
Newfoundland and Labrador – Lottery, Sports Betting
Nova Scotia – Casino, Lottery, Sports Betting
Ontario – Casinos, Lottery, Sports Betting
Prince Edward Island – Casinos, Lottery, Sports Betting
Quebec – Casinos, Lottery, Horse Racing, Sports Betting
Saskatchewan – Casino, Horse Racing, Lottery, Sports Betting
Northwest Territories – Lottery, Sports Betting
Nunavut – Lottery, Sports Betting
Yukon – Casinos, Lottery, Sports Betting
British Columbia – Casinos, Lottery, Horse Racing, Sports Betting
Manitoba – Casinos, Sports Betting
New Brunswick – Casinos, Horse Racing, Lottery, Sports Betting
Newfoundland and Labrador – Lottery, Sports Betting
Nova Scotia – Casino, Lottery, Sports Betting
Ontario – Casinos, Lottery, Sports Betting
Prince Edward Island – Casinos, Lottery, Sports Betting
Quebec – Casinos, Lottery, Horse Racing, Sports Betting
Saskatchewan – Casino, Horse Racing, Lottery, Sports Betting
Northwest Territories – Lottery, Sports Betting
Nunavut – Lottery, Sports Betting
Yukon – Casinos, Lottery, Sports Betting
Casinos – Revenue generated from casino licenses and fees often fund government assisted programs such as the free health care system and other local provincial or territorial programs. In the casinos, you are likely to find traditional games such as Slots, Baccarat, Roulette, Video Poker, Blackjack, Craps and more.
Poker – There are over 50 domestic casino locations offering poker tables across Canada. Canadians are permitted to play online poker since there are no laws that specifically outlaw it. Texas Hold’em is one of Canada’s most played poker games.
Lottery – Lotteries are set up by the provinces or territories and fund local community programs. Every province and territory has access to the lottery with most areas having access to multiple lottery games. Sports betting is tagged to lottery services across the provinces and territories.
Sports Betting – Sports betting is allowed across the board with a service known as Sports-Select, Pro-Line, Pari Sportif, or Sports Action. It is the same service with different names across the country. Tickets can be purchased at lottery centers in some provinces now accepting wagers online.
Horse Racing – Horse racing is immensely popular in Toronto. There are at least 5 tracks within the Toronto greater area. All tracks in Canada are located fairly close to the US border.
Forms Of Legal Online Gambling In Canada
Canadians have many options when it comes to betting online. Almost all the territories and provinces allow online betting, and some regulate their own online betting services. Canadian criminal code states that the Canadian government and/or its provinces must license all gambling businesses operating within the nation’s borders. While offshore gambling sites are not subject to Canada’s licensing requirements, we recommend that punters only consider those options that are legitimately licensed and regulated through a respected governing jurisdiction, such as the ones listed in this guide. Many Canadians prefer legally licensed offshore gambling sites for their more attractive bonus offers, better odds, a wider selection of wagering options and betting platforms, and of course, the convenience. According to the Canadian Gaming Association, it is estimated that Canadians wager about $4 Billion a year with offshore online betting sites and some of the more popular forms of online betting come from these services.
- Online Casinos
- Online Poker
- Online Sports Betting
- Online Horse Betting
- Online Lotteries
Important Canadian National Gambling Laws
Bill C290 – Bill C290 was intended to amend the Criminal Code to allow single sport game bets. The way it stands now is that Canadians may place parlay bets on sporting events through local sportsbooks. A parlay bet is a wager placed on the outcome of multiple events, and according to existing law, a minimum of 3 events qualifies for the parlay. The bill was submitted to the House of Commons but was eventually rejected. Had the bill passed, individuals could have placed a wager on just one game, match or event and won or lost the bet based on a single outcome.
Criminal Code 201 – CC201 states that anyone who keeps or operates a gambling house is guilty of a criminal offense and can face up to 2 years in prison. The same applies to anyone who is found in an illegal gambling house or leases, protects, or permits a place to be used as an illegal gambling house.
Criminal Code 202 – This code condemns illegal bookmakers, illegal betting and pool selling. It states that anyone caught placing a bet, accepting a bet or selling a pool bet is susceptible to legal action and could face up to 2 years imprisonment.
Criminal Code 206 – This code lays out punishments for anyone who frauds the lottery system or schemes games of chance. It details many different lottery scheme scenarios and deems them illegal under this code.
Criminal Code 209 – CC209 states punishment up to 2 years imprisonment for anyone who is caught cheating or has intent to defraud anyone or gambling service.
First Nations Gaming Act – A piece of legislation enacted by the First Nations government of Saskatchewan. Lays out an orderly procedure and economic development plan to be driven by the Saskatchewan Indian Gaming Commission.
Who Regulates Gambling In Canada?
Provincial or territorial gaming control boards regulate Canada’s gambling operations. Each province or territory has their own way of regulating games of chance and their own gaming regulators. They also have their own way of disbursing the revenue earned into government funds. Legal gambling options often pay for the Canadian free health care system, educational services, and other government-funded services. Below are the gaming commissions listed and the specific aspect of the gambling industry that they oversee.
Alcohol & Gaming Commission of Ontario – The AGCO is responsible for regulating the gaming industry and horse racing in the province of Ontario.
Alberta Gaming & Liquor Commission (AGLC) – The AGLC regulates the gaming industry in the province of Alberta. Revenue received from gaming activities is returned to the community by the means of licensed charities.
Atlantic Lottery Corporation – a Canadian organization that operates lottery games in Atlantic Canada. Owned jointly by 4 provinces: New Brunswick, Prince Edward Island, Nova Scotia, and Newfoundland and Labrador. Regulates casinos on Prince Edward Island.
British Columbia Gaming Policy / Enforcement Branch – The Enforcement branch regulates lottery games, casino games, online gambling, horse race betting in the province of British Columbia. Revenue generated from gambling is used to fund city services such as health care.
Department of Community Services – Permits charity games for the province of Yukon.
Kahnawake Gaming Commission – The Kahnawake Gaming Commission licenses and regulates interactive gaming, terrestrial poker rooms and raffles in the Mohawk territory of Kahnawake. Kahnawake is regarded as a sovereign nation operating in Canada’s borders but not under Canadian legal authority.
Liquor and Gaming Authority of Manitoba (LGA) – The LGA licenses gaming employees, products, and operations in the province of Manitoba.
Loto Quebec – Loto Quebec was founded in 1969 to oversee the activities surrounding games of chance in the province of Quebec.
New Brunswick Lotteries & Gaming Corporation – Oversees lottery schemes and responsible for the development and implication of the responsible gaming policy for the province of New Brunswick.
North West Territories Municipal & Community Affairs – Oversees the lottery system for the North West Territory. There are currently no casinos in the NW Territory.
Nova Scotia Provincial Lotteries & Casino Corporation – Regulates games of chance and lotteries and assures that 100% of the profits go back into the community to fund important programs.
Ontario Lottery & Gaming Corporation – Regulates casinos, lotteries and horse racing for the province of Ontario.
Quebec Alcohol, Racing and Gaming Commission – The board has supervision over casinos, horse racing and amusement machines for the province of Quebec.
Saskatchewan Liquor & Gaming Commission (SLGC) – The SLGC regulates gaming operations such as casinos, horse racing and charitable gaming in the province of Saskatchewan.
Service NL – Regulates charitable and non-profit organizations lottery fundraising events.
Legal Minimum Gambling Age
Minimum age requirements for legal gambling correspond with the legal drinking age mandated by the individual provinces and territories. Nineteen is the legal minimum gambling age at casinos throughout most of Canada, but 18 is the legal gambling age in Alberta, Manitoba, and Quebec.
Indian Casinos In Canada
The first Indian casino started operations in Toronto in the early 1990’s but in 1995 the First Nations Gaming Act was enacted to allow regulation of Indian casinos in the Saskatchewan province. By 1996, four more casinos had opened their doors. All casinos are charitable casinos and profits are put back into public funds. Today there are about 20 Indian casinos spread across 6 provinces.
Illegal Gambling Operations In Canada
Canada has a long history of illegal gambling operations that are still active today. Underground illegal gambling houses are in just about every major city throughout the country. These illegal gambling houses often feature illegal gaming machines and table games. Organized crime is often associated with these illegal gambling activities, so local task forces and provincial government agencies are especially looking to curtail these operations. In 2015, 33 illegal gambling houses were uncovered in the Toronto area and one raid even confiscated over $200,000. There have been raids reported in all major cities across Canada, but many of these illegal operations seem to be located in Toronto.
Do I Need To Pay Taxes On My Online Winnings?
No, the Canadian Income Tax Act states that unless someone is a professional and makes a living from gambling, they are not required to pay a tax or claim income on gambling winnings. The Minister of National Revenue states that individuals who consistently earn money from legal gambling and/or originates their primary source of income from gambling can be designated as a business and required to pay taxes on winnings.
Problem Gambling Help In Canada
Canadians like to participate in public, advertised contests and games. We compete for prizes. Most often we are unaware that the promoters of these events are governed by specific rules in relation to them.
The law on contests, prizes and games is sometimes classified under marketing law. A level playing field for these activities protects consumers from unfair or deceptive promotional activities relating to the contests and games. In its simplest form, gambling involves a prize, a chance and a consideration (money or other economic value) exchanged. Business promotions that are a combination of these three elements constitute a form of gambling. The state has an interest in protecting average citizens from wasting their time and energies engaged in what are essentially fraudulent activities. Reducing the incidence of fraudulent activity in commerce is not only fair to honest competitors, but it also increases confidence in, and respect for, our competitive marketplace.
This article identifies and highlights the federal and provincial regulation of contests, games and prizes.
Federal Regulation
In its simplest form, gambling involves a prize, a chance and a consideration (money or other economic value) exchanged. Business promotions that are a combination of these three elements constitute a form of gambling. Most businesses circumvent the gambling characterization by removing or changing one of these three elements. For example, the business charges nothing (no consideration) for its customers to win a prize. Perhaps skill (as in answering a question) replaces random chance. These contests, prizes and games are technically not gambles. They are legal and unregulated.
In Canada all gambling-related activities – that is, those involving a prize, chance and consideration exchanged – start with the Criminal Code (s. 201 – 209) Given the substantial consideration that might be exchanged in pursuit of an elusive prize, serious social and moral hazards accompany gambling. Moreover, governments have enjoyed the extraordinary revenue stream that may be harvested from controlled, legalized and regulated gambling. Accordingly, all gambling is generally criminalized in Canada (see section 206).
Criminal Code Of Canada Illegal Gambling Winnings
After initially criminalizing all gambling, the Criminal Code, in the next section (s. 207), sets out exceptions. Activities which are provincially-licensed and regulated are deemed to be legal gambling. Few business promotions involving contests, games and prizes will need to be registered under provincial gambling programs.
The Criminal Code also criminalizes cheating at play and failing to comply with the provincial regulations (s. 208 and 209). The provinces have established large, complex administrative agencies such as the Alberta Liquor and Gaming Commission and the Ontario Lottery and Gaming Corporation, supported by detailed regulations and processes to implement legal gambling in their jurisdictions.
Any business using a contest as a promotional tool must disclose specifics of the prizes such as the number and value of the prizes, the areas in which the prizes are being distributed, and anything that affects the chances of winning. Similar to the Criminal Code general prohibition of gambling, section 53 begins with a blanket prohibition:
53 (1) No person shall, for the purpose of promoting, directly or indirectly, any business interest or the supply or use of a product, send or cause to be sent by electronic or regular mail or by any other means a document or notice in any form, if the document or notice gives the general impression that the recipient has won, will win, or will on doing a particular act win, a prize or other benefit, and if the recipient is asked or given the option to pay money, incur a cost or do anything that will incur a cost.
This provision, enacted in 2002, in complicated legal language, Any business using a contest as a promotional tool must disclose specifics of the prizes such as the number and value of the prizes, the areas in which the prizes are being distributed, and anything that affects the chances of winning. says that to promote itself in any way, businesses cannot send out any document that creates the impression the recipient, by paying money or incurring a cost, has won or will win anything.
Punishment is a fine for a corporation, and for a corporate director or officer a fine and up to 14 years imprisonment.
By now, readers may be wondering “how do promotions such as ‘Roll Up the Rim to Win’ pass muster with this general prohibition?” The answer is found in the general exception. Businesses can operate such promotions with contests, games and prizes if a recipient actually wins a prize and the business “makes adequate and fair disclosure of the number and approximate value of the prizes or benefits, of the area or areas to which they have been allocated and of any fact within the person’s knowledge that materially affects the chances of winning, By now, readers may be wondering “how do promotions such as ‘Roll Up the Rim to Win’ pass muster with this general prohibition?” The answer is found in the general exception. distributes the prizes or benefits without unreasonable delay; and selects participants or distributes the prizes or benefits randomly, or on the basis of the participants’ skill.” (s. 53(2))
If you have not heard of any convictions under this provision of the Competition Act, it is because there really have not been any of note. These rules, however, can also be used as a basis for civil claims and at least one class action settlement under this provision was approved (Speers v. Reader’s Digest, 2010 ONSC 6366).
Many business promotions are communicated to the public as spam messages. Since July 1, 2014, this legislation endeavours to protect Canadian consumers from spam and to increase the confidence of Canadians in the use of electronic commerce. This new legislation creates an offence to knowingly make false or misleading statements and provide false or misleading information. Any message sent by electronic communication must be received with consent, must clearly identify who sent the message, must allow the recipient to contact the sender (contact information must remain valid for at least 60 days), and permit an unsubscribe option where opting out can be done at no cost and up to at least 60 days later. Opt out requests must be processed within 10 days.
The law adopts an opt-in approach that requires a positive and explicit expression of consent for each new commercial electronic message. No longer will marketers be able to pre-check a box to receive messages or bundle consent with general terms and conditions of sale. The law also prohibits false or misleading subject lines or sender information. (Editors Note: The Centre for Public Legal Education has published a set of FAQs about CASL.)
Personal Information Protection and Electronic Documents Act (PIPEDA) and Privacy Act
This federal legislation regulates the collection of personal data for marketing purposes. It applies to provinces other than Alberta, British Columbia and Quebec that have passed substantially similar laws. Subject to some exceptions, organizations may only collect, use and disclose personal information once they have notified the subject individuals of the purpose of the data collection and received meaningful and informed consent from them. In addition, personal information can only be collected, used or disclosed for purposes that are reasonable and only to the extent necessary to fulfil those purposes.
Likewise, the Privacy Act can also come into play with the law of contests, prizes and games because most times you will be asked to provide personal information upon entering a contest or winning a prize. Under section 5, the Act states that the individual must be informed as to why the information is being collected. Under section 6, the information that is collected must only be used for its intended purpose; otherwise, the individual must consent to additional uses.
Provincial Legislation
Criminal Code Of Canada Illegal Gambling Sites
In addition to federal criminal and competition legislation, the provinces prohibit unfair and deceptive trade practices which can include dishonest commercial contests, games and prize promotions. Almost all of these provincial statutes deem certain commercial tactics as illegal trade practices. These include taking advantage of consumers, using high pressure or undue influence, and resorting to ambiguous, exaggerated or deceptive facts in promotion. All of these tactics can come in the form of contests and prize promotions.
It is also an unfair practice to knowingly deceive or mislead the consumer, represent sponsorships, affiliations, or benefits that are not true and that the product or service does not have. In addition to federal criminal and competition legislation, the provinces prohibit unfair and deceptive trade practices which can include dishonest commercial contests, games and prize promotions.A company also cannot make false or misleading representations or misrepresent the quality or standard of any product or service.
This genre of provincial legislation across Canada is similar in content but goes by different names: the Alberta Fair Trading Act, the British Columbia Business Practices and Consumer Protection Act, the New Brunswick Financial and Consumer Services Commission Act, and the Consumer Protection Acts of Saskatchewan, Manitoba, Newfoundland and Labrador, Ontario, Quebec, Nova Scotia, Prince Edward Island, Yukon, Northwest Territories, and Nunavut as well as the Business Practices Acts of Manitoba and Prince Edward Island.
Criminal Code Of Canada Illegal Gambling Laws
Conclusion: the Case of Richard v. Time
Criminal Code Of Canada Illegal Gambling Rules
While it seems that Canada, through federal and provincial legislation, has in place many safeguards for the consumer when it comes to contests, games and prizes as business promotions, the real test of effectiveness will be found in the enforcement of the regulations and the remedies.
The most prominent recent demonstration of how this regulation works was the case of Richard v. Time Inc., 2012 SCC 8 (CanLII) a case that went to the Supreme Court of Canada under the Quebec provincial consumer legislation.
Richard received a letter referred to as an “Official Sweepstakes Notice” in the mail from Time magazine. Several attention-grabbing, exclamatory sentences in bold uppercase letters suggested he had won a cash prize of U.S. $833,337, were combined with conditional clauses in very small print, some of which began with the words “If you have and return the Grand Prize winning entry in time.” The back of the letter informed Richard he would qualify for a $100,000 bonus prize if he validated his entry within five days. The reply coupon offered Richard the opportunity to subscribe to Time magazine. Believing he would receive the promised amount, Richard immediately subscribed to Time magazine and returned the reply coupon. He received no money because he did not have the winning entry for the draw. The whole package, they explained, was only an invitation to participate in a sweepstakes.
The Supreme Court of Canada unanimously agreed that the test for false or misleading advertising is “general impression”: the one a person has after an initial contact with the entire advertisement. The average consumer here would have been under the general impression that Richard held the winning entry and had only to return the reply coupon to initiate the claim process. The Court said it “was riddled with misleading representations” and had “fraudulent effect.”
As for legal remedy, the Court compensated Richard for moral injuries in the amount of $1,000 and punitive damages of $15,000. For a more detailed examination of this case, please see “Turning a Loss into a Win” by Stephanie Laskoski.
This recent judicial decision reminds us that legislation is often mightier on paper than it is in action. The best law of consumer protection in commercial contest, game and prize promotions may often simply be to discard the promotion.